Bitcoin’s Meteoric Rise: $150,000 by 2025?

Bernstein has an exhilarating forecast for the ever-volatile Bitcoin. By 2025, they believe the digital currency could soar to a staggering $150,000. The increment will account to 337% in this case. The foundation of this prediction? The anticipation of a Bitcoin exchange-traded fund (ETF).

Gautam Chhugani, Bernstein’s leading analyst, projects that the U.S. Securities and Exchange Commission (SEC) will greenlight a Bitcoin ETF by early 2024. Considering the current Bitcoin value hovers around $34,000, Bernstein’s outlook would mean a price surge five times that amount. This proposed leap is also substantially higher than Bitcoin’s peak of over $67,000 witnessed in November 2021.

But what does an ETF approval imply? Bernstein anticipates this move could redirect up to 10% of the Bitcoin circulating supply towards ETFs. This would pave the way for mainstream investors to effortlessly include Bitcoin in their investment mix. Right now, the closest counterpart is Grayscale’s Bitcoin Trust (GBTC), holding a modest 3% of the total available Bitcoin.

Chhugani pens down his thoughts assertively, saying, “While everyone might not be a Bitcoin enthusiast, seeing it objectively indicates a favorable shift ahead. The synergy of impeccable timing and potential ETF approvals by giants like BlackRock and Fidelity points towards promising days ahead.”

But it’s not just the ETF drawing attention. Chhugani’s recent analysis dives deep into Bitcoin mining companies, emphasizing the impending Bitcoin “halving” event in April 2024. This systematic halving of Bitcoin rewards, an intrinsic part of its design, will likely sideline underperforming miners, giving a competitive edge to the resilient ones.

Recent trends lend weight to this optimistic outlook. Just last week, Bitcoin touched $35,000, a pinnacle not seen since May 2022. There’s a palpable eagerness among investors for the SEC’s nod to the ETF, especially after the regulatory body chose not to contest a crucial court decision involving Grayscale.

Yet, this doesn’t seal the deal on an ETF approval. SEC’s head, Gary Gensler, has been openly critical of the crypto domain, frequently pointing out its susceptibility to deceptive practices. Will the SEC soften its stance on crypto ETFs? It’s a tantalizing uncertainty.

Amidst this optimism, it’s essential to note the recent challenges in the crypto world. This includes the SEC’s lawsuit against Binance and the tumultuous bankruptcy declaration by crypto exchange FTX, with its ex-CEO, Sam Bankman-Fried, under the legal scanner for alleged fraud.